Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents

40 Pages Posted: 3 Jan 2011

See all articles by Christopher B. Barrett

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Maren E. Bachke

Independent

Marc F. Bellemare

University of Minnesota - Twin Cities - Department of Applied Economics

Hope C. Michelson

Columbia University - Columbia Earth Institute

Sudha Narayanan

Indira Gandhi Institute of Development Research (IGIDR); International Food Policy Research Institute

Thomas F. Walker

World Bank; Cornell University

Date Written: December 30, 2010

Abstract

Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.

Keywords: Agricultural Value Chains, Contract Farming, Africa, Asia, Latin America

JEL Classification: L23, L24, O13, O14, Q12

Suggested Citation

Barrett, Christopher B. and Bachke, Maren E. and Bellemare, Marc F. and Michelson, Hope C. and Narayanan, Sudha and Walker, Thomas F. and Walker, Thomas F., Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents (December 30, 2010). Available at SSRN: https://ssrn.com/abstract=1733942 or http://dx.doi.org/10.2139/ssrn.1733942

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Maren E. Bachke

Independent ( email )

Marc F. Bellemare (Contact Author)

University of Minnesota - Twin Cities - Department of Applied Economics ( email )

MN
United States

Hope C. Michelson

Columbia University - Columbia Earth Institute ( email )

314 Low Library
535 West 116th Street, MC 4327
New York, NY 10027
United States

Sudha Narayanan

Indira Gandhi Institute of Development Research (IGIDR) ( email )

Gen A.K. Vaidya Marg Santoshnagar
Goregaon (East)
Mumbai, Maharashtra 400065
India

International Food Policy Research Institute ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

HOME PAGE: http://https://www.ifpri.org/profile/sudha-narayanan

Thomas F. Walker

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Cornell University ( email )

Department of Economics
414 Uris Hall
Ithaca, NY 14853-7601
United States

HOME PAGE: http://sites.google.com/a/cornell.edu/thomaswalker/

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